Information on Shares
Book value per share
Earnings per share
Dividend per share

22.64
4.90
3.00

20.87
5.29
3.00

20.23
5.35
3.00

15.60%
20.66%
-10.13%
-9.76%
-10.32%
10.12%
-7.02%

-3.22%
-8.02%
0.15%
-0.03%
1.14%
-18.50%
-1.08%

-4.51%
-18.78%
2.64%
3.20%
1.14%
55.65%
37.40%

Cash in hand and at banks
Accounts receivable
Inventory
Total current assets
Investment
Land, building and equipment (net)
Total assets
Loans from banks
Accounts payable
Total current liabilities
Long-term loans
Non current liabilities(Convertible Bonds)
Total liabilities
Registered capital
Paid-up capital
Retained earnings
Total shareholdersâ&#x20AC;&#x2122; equity
Number of shares Outstanding Dec 31
Weighted average number of shares
PROFIT & LOSS STATEMENT SUMMARY
Sales
Total income
Cost of sales
Selling and administrative expenses
Total expenses
Net profit

MESSAGE FROM CHAIRMAN & PRESIDENT
The Company was successfully
listed on the Taiwan Stock
Exchange as a Taiwan
Depositary Receipt (TDR)
in September 2003.

Due to the uncertainty of the military action in the Middle East early this year, the economic growth
and consumer spending remained stagnant during the first half of 2003. The war not only affected the
Company, which experienced a decline in sales compared to that of last year, but also aversely impacted
businesses in this industry and in other industries as well. However, we believe this decline in sales to be
for the short run and expect to see a continuous future sales growth.
Two important events occurred last year, which positively affected the Company. First, thanks to
the support from our investors and the government, the Company was successfully listed on the Taiwan
Stock Exchange as a Taiwan Depositary Receipt (TDR) in September 2003. We believe that the listing on
the TSE will positively improve our reputation and expand our future fund raising channels. Second, we
expanded our production capacity by investing in a manufacturing facility in the People Republic of China.
By the third quarter of 2003, we completed the construction of the facility and commenced the production
of new products. The establishment of a production plant in China is an important step for the Company
in its strive toward becoming a global EMS.
In 2004, we expect to see a positive global economic outlook, and with our worldwide presence and
the support of our dedicated staff and management we will be able to achieve business growth in the
future.
On behalf of the Kinpo Group, I would like to express my utmost gratitude to all our shareholders
and business associates for their continuous support in the Company.

Mr. Hsu, Sheng-Hsiung
Chairman

Cal-Comp Electronics (Thailand) Public Company Limited

The Company completed the
construction of the first
manufacturing plant in
The Peopleâ&#x20AC;&#x2122;s Republic of China
for the production of
telecommunication and computer
peripheral products.
Given several negative global economic factors, such as the Iraq War and the SARs outbreak, the
year 2003 remained a tough year for the Company. The distressed economic situation caused some delay
in the launch of our new products. Furthermore, due to the uncertain economic condition our customers
became more conservative and cautious in placing product orders. Therefore, the sales of the Company
slightly declined, compare to that of the previous year.
The listing of the Company on the Taiwan Stock Exchange as a Taiwan Depositary Receipt (TDR)
was a big step. It will surely assist us in our expansion by enhancing the fund raising channels on an
international level, helping in reducing the future cost of funds, thus enabling us to generate better
returns to our shareholders.
In addition, the Company completed the construction of the first manufacturing plant in The Peopleâ&#x20AC;&#x2122;s
Republic of China for the production of telecommunication and computer peripheral products. This
expansion will focus on producing new products and serving new clients in both the Chinese market and
the global markets as well. Moreover, we have begun the construction of the second plant in China,
which will be completed this year. Hopefully, the continuing economic recovery and the readiness of our
production facilities will expand our business growth in the coming years.
We are confident in our ability to sustain future sales growth, to effectively compete with our
competitors, to produce credible and reliable products with utmost quality, and to serve our customers
with competent business operations and knowledgeable staff. More importantly, we are confident of our
potential in becoming a leading EMS in the near future.
On behalf of the Board of Directors, I would like to express my heartfelt gratitude to our shareholders
whose confidence contributes to the ultimate achievement of the Company and to our new and existing
patrons who continuously support us, making us one of the leading companies in the industry.

BOARD OF DIRECTORS
no. of ordinary shares 361,000
no. of TDR -NoneEducation
• Bachelor of Chinese, National Taiwan Normal University
Working Experience • 1992-present The Chairman of the Board of Kinpo Electronics Inc.
1994-present The Chairman of the Board of Compal Electronics Inc.
1989-present The Chairman of the Board of Cal-Comp Electronics (Thailand) Plc.

no. of ordinary shares 456,000
no. of TDR -NoneEducation
• Bachelor of Electrical Engineering, National Taiwan University
Working Experience • 1995-present The Director of the Board of Kinpo Group
1989-present The Director of the Board of Cal-Comp Electronics (Thailand) Plc.

MR. KUO, HSIEN-MIN

MR. HSU, SHENG-CHIEH

no. of ordinary shares 556,000
no. of TDR -None-

Education
• Bachelor of Architecture, Tamkang University
Working Experience • 1994-present The Director of the Board of Kinpo Electronics Inc.
1989-present The Director of the Board of Cal-Comp Electronics (Thailand) Plc.
MR. KO, CHARNG-CHYI

no. of ordinary shares 156,000
no. of TDR -None-

Education

• Master of BA, National Cheng Chi University
Bachelor of Business Administration, National Taiwan University
Working Experience • 1994-present The Director of the Board of Kinpo Electronics Inc.
1989-present The Director of the Board of Cal-Comp Electronics (Thailand) Plc.
MR. CHOU, KUNG-HSIUNG

On May 2001, the Company established a new subsidiary company abroad with an initial capital
of USD 50,000in order to enhance the company’s business potential in the future. The Company was
established to be a holding company for the CCET’s investment oversea, as also act as a selling
agent for CCET’s products. The registered address is situated at Beaufort House, P.O. Box 438, Road
Town, Tortola, British Virgin Islands.
• Wise Sigma International Holding Co.,Ltd.

45%

November 2001, the Company’s had invested 45% in Wise Sigma International Holding Co., Ltd.
through Logistar Internatonal Holding Co., Ltd. with an initial capital of USD 50,000 which was
increased to USD 5,000,000 on October 2002. It was established to enhance the Company’s business
potential in the future. The registered address is situated at Beaufort House, P.O. Box 438, Road
Town, Tortola, British Virgin Islands.
• Telian Corporation (Korea)

27.82%

Incorporated in Korea, 60 % of initial registered capital of Telian shares are held by parties who
have no related interest in Kinpo group and Cal-Comp group. This subsidiary is engaged in research
and distribution of cordless phones and mobile phones by sending the prototype to Cal-Comp
to manufacture and export. The office address is 4th Fl., Namjeun Bldg., 53-3 Haan-Dong,
Kwangmyung-Si, Kyunggi-Do, 423-060, Korea.

In May 2002, Cal-Comp Electronics (Suzhou) Co., Ltd. was established with an initial capital of
USD 10 million in order to expand the capacity and manufacture telecommunication equipments
and accessories. The registered address is no.18, Jiangxing Road, Wujiang Economic Development
Zone, Jiangsu, The People’s Republic of China.
• Cal-Comp Optical Electronics (Suzhou) Co., Ltd.

100%

In October 2003, the Company established a second subsidiary company in The People’s Republic
of China, with an initial capital of USD 10 million, to manufacture the electronics equipments. The
registered address is no.18, Jiangxing Road, Wujiang Economic Development Zone, Jiangsu, The
People’s Republic of China.
• Inx Japan International, Inc.

NATURE OF BUSINESS OPERATION
Cal-Comp Electronics (Thailand) Public Company Limited was established with an initial
registered share capital of Baht 125 million on 4th December, 1989 to manufacture and export finished
electronic products and accessories. The major shareholder was Kinpo Electronics, Inc., a giant
manufacturer of electronic products in Taiwan. Its current products are calculators, global positioning
systems (GPS), digital cameras, personal digital assistants (PDA), etc. Kinpo Electronics Inc. was
listed on the Taiwan Stock Exchange (TSE) in 1989. At present, the Companyâ&#x20AC;&#x2122;s major shareholders
are Kinpo Electronics, Inc. and Compal Electronics, Inc. (a company listed on TSE and being a company
in the Kinpo Group manufacturing monitors and notebooks) holding 57.13% and 11.36% stake
respectively in the Company.
Currently, the main electronic products manufactured by the Company are as follows: Ink Jet
Color Printer, Multi-function Printer, Auto PC, LCD Monitors, Cordless Telephones, Dect Phone,
Mobile phone Code Division Multiple Access (CDMA) and Time Division Multiple Access (TDMA),
Fixed Wireless Terminal (FWT), Integrated Satellite Receiver and Recorder, Cable Modems, Electronics
Calculator, Facsimile Machines, Blue tooth, Web Pad and Electronics Dictionary. The Company can
provide its customers with integrated services. The Company has initiated the new products such as
multi-function printer, PCBA and already started the mass production and delivery to the customers.
Afterwards, a research and development department has been established to design, develop and
improve its products in an attempt to achieve the cost-efficiency aim, and to modify cosmetics and
mechanism of products to satisfy its cost reduction program and customersâ&#x20AC;&#x2122; requirements. As a
result, the Company has become well known and recognized both locally and internationally for its
high-standard quality of products. It was among certain famous companies in Thailand, which was
preliminarily granted a certificate of standard entitled ISO 9002, ISO 14001, QS-9000 and IEC17025.
The Company has been listed in the SET in 2000 with the Baht 3,200 million of registered
share capital, which was increased to Baht 3,780 million on May 23, 2002 due to the issuance of ECB
(Euro Convertible Bond), and as of December 31, 2003, the paid-up capital was Baht 3,050,310,720.
It has been granted certificates of promotion by the Board of Investment in the category 5.6 in the
areas of production of electronic products and 5.7 in the areas of production of component parts and
accessories of electronic products. Plants are located at 2 provinces of Thailand and 1 province of
China i.e. 3 plants in Kratoomban District, Samutsakorn, 3 plants in Khaoyoi District, Petchburi and
1 plant in Suzhou, Jiang Su province, China with totally 6,787 employees as of December 31, 2003.
There is 1 plant under construction at Suzhou, Jiang Su province, China with 1,790 employees in
total.

INVESTMENT POLICY AND RIGHTS AND BENEFITS DERIVED FROM INVESTMENT IN ANY
SUBSIDIARY COMPANY, ASSOCIATED COMPANY AND OTHER COMPANIES.
In an attempt to make investments in any subsidiary company, associated company and other
companies, the Company will particularly take into account the possibility of generating proceeds
and benefits to be obtained by the Company. As at present the Company plans to expand its base
into the telecommunications, computer and internet industries, it continues to make investments in
such subsidiary companies, associated companies and other companies in such industries in Korea
and Taiwan which are well-recognized for their expertise in the research and development of
telecommunications and computer products. As a result, the sales volume of the Company has
increased and the clients base expanded, such developing of client base will generate more sales
and business opportunity to the Company, and it has further received a great amount of profit in
proportion to shareholding and dividend payment from such investments. (Particulars of the
Joint-Venture Agreement between Telian Corporation and Wide Telecom, Inc. are set forth in
Agreement Part).

Note: 1) All types of products are manufactured by Cal-Comp Electronics (Thailand) Plc., and Cal-Comp
Electronics (Suzhou) Co., Ltd.
2) Fixed assets cannot be classified by product group due to the fact that several products are
manufactured in the same line of production.

Cal-Comp Electronics (Thailand) Public Company Limited

MATERIAL CHANGES IN 2003
• The first subsidiary company in Suzhou, The People’s Republic of China named Cal-Comp
Electronics (Suzhou) Co., Ltd. was established with the initial investment of USD 10 million.
• The second subsidiary company was established in Wu Jiang, The People’s Republic of China
named Cal-Comp Optical Electronics (Suzhou) Co., Ltd. with the initial investment of USD 10
million.
• The first China Plant commenced production in 3Q/03 and produces TDMA, CDMA, GPRS and
Multi-Function Printer.
• The second China Plant has commenced construction in Wu Jiang, China, it aimed to produce
the PC and Peripheral products.
• The Company invested YEN10,000,000 or Baht3,650,000, which is accounted for 20% of total
outstanding shares, in Inx Japan International, Inc.
• The Company purchased a new office for Taipei Branch at Sindian City, Taipei Hsien, Taiwan
(R.O.C.) from non-related party for total area including the parking lot for 7,483 square meters
with total amount of NTD374.00 million or THB456.28 million (market price) due to the company’s
long-term strategy consideration and future business expansion purpose.
• Taiwan Depositary Receipt (TDR) was listed at Taiwan Stock Market on September 22, 2003. Trading
code in Taiwan Stock Exchange Corporation (TSEC) is 9105.TW.
• Due to the exercise of Euro Convertible Bond (ECB) in 2003, the Company’s paid up capital has
increased from Baht 3,020,000,000 to Baht 3,050,310,720 as of December 31, 2003. Moreover,
the ECB has been redeemed in December 2003 with the redemption amount of US$9,999,000, as
a result, the ECB outstanding is 35,500 units with an amount of US$35,500,000 as of December
31, 2003.
MARKET AND COMPETITION
CCET, which has all of its production facilities in the low cost base of Thailand and China, is
aware of this general outsourcing trend and of the growth of the electronics product in the coming
years. Since China is the most important emerging market for consumer electronics, it is necessary
to establish production facilities and capacities close to the market.
Mobile Market
We do focus on the growth in China which will come from the handset market such as CDMA,
TDMA and GPRS handsets.
According to IDC, in terms of mobile market, the worldwide mobile phone market will enjoy
long-term expansion through 2007 and beyond. Driven by the intense human desire to communicate
with one another while mobile, subscriber levels and mobile phone shipments will expand at a
sustained pace, surpassing 1.2 billion individuals total and 471 million units shipped in 2003. Barring
unforeseen events and disclosures, worldwide economic improvement in 2004, the rollout of 3G
services worldwide, and new mobile phone technologies will allow the industry to maintain a growth
rate of 7% overall through 2007.

Source : IDC, 2003
Image Products Market
The image products also provide another potential growth drive; they have been focus on
computer and video peripheral products. Digital image technology has brought the image process
revolution into peoples lives. Convenience and slimness leads people to use new consumer
electronics, such as TFT-LCD monitor, Car PC, so on. This milestone for the Company in that it
starts to put efforts in R&D and ODM business for mainstream product, such as 15- to 17- inch TFTLCD monitor.

Cal-Comp Electronics (Thailand) Public Company Limited

Printer
The OEM printer business has been playing an important revenue source since 1999. OEM
Printer sales is expected to be sustainable with flat growth since the global inkjet printer demand
matures and the key component of cartridge is mainly controlled by global vendors, such as HP,
Epson, Cannon, and Lexmark. According to the global inkjet printer shipment forecast by Market
Access, a market research institution Japan, global demand has entered the modest growth stage
of 10.6% YoY from 53 million in 2002 to 58.6 million in 2003 despite the popularity of digital image
process.
Global Inkjet Printer Shipment Forecast
(mn-unit)

(%)

70

25

60

20
15

50

10
40
5
30

0

20

(5)

10

(10)
(15)

0

1997

1998

1999

Shipment (mn-unit)

2000

2001

2002

2003

YoY (%)

Source : Market Access, SinoPac, Jan. â&#x20AC;&#x2122;03
The competitive advantages for the Company include low production cost, reliable OEM quality,
time to market capability, Co-design technology and also providing total solution to clients. In terms
of the product, the Company keeps continuously launching new products such as Multifunction
printer, Printed Circuit Board Assembly during 2003. Such strong points make us prevail over many
of our competitors. Thanks to our good relationships with our suppliers, the Company has a
negotiating power to request amicable business terms and conditions. The Company has established
an active research and development department to oversee the quality of our products and made
several investments in companies specializing in designing computer and telecommunication
equipment and accessories. The Company is also aware that some customers, especially
medium-sized companies, have not been getting enough attention from the top-tier OEM and EMS
players, and are increasingly turning to smaller EMS vendors. Rather than competing directly with
top-tier OEMs, the Company is well prepared to enhance our competitiveness within the mid-tier
EMS business in Asia.
PROCUREMENT OF PRODUCTS FOR SALE
The manufacturing plants are located in Thailand and The Republic of China i.e. 3 plants
situated at No. 60 Moo.8, Settakij Road, Kratoomban District, Samutsakorn, 3 plants situated at No.
138 Moo.4, Petchkasem Road, Khaoyoi District, Petchburi with total area of 193,600 square metres

1

7

1

8

Annual Report 2003

and the manufacturing plant in China situated at No.18,Jiangxing East Road, Wujiang Economic
Development Zone, Jiangsu, the Republic of China with total area of 298,667 square metres.
Currently, the Companyâ&#x20AC;&#x2122;s manufacturing consumes one shift/day (8 hours). An average actual
production quantity on a daily basis is up to 75% of the full productivity. During 2001-2003, details of
the actual production quantity are set forth below.
(Unit in Thousand set)

Products

2001

2002

2003

Office Equipment

2,286

1,879

1,894

Telecommunication Accessories

2,958

5,779

9,376

Computer Accessories

7,244

8,150

11,441

155

101

-

Others

TYPES AND SOURCES OF ESSENTIAL RAW MATERIALS
Most of raw materials are imported from foreign countries. The following list shows the
sources of each kind of raw materials.
Type

Details

Source

LCD Panel

TFT LCD Panel, Module

Taiwan, Korea, China

Radio Components

RF Modulator, Tuner,

Korea, Taiwan, China

Resonator, Antenna, Filter
Chip IC, IC and IC encoders

Electric circuits which vary

Singapore, Japan, Korea, U.S.A.

in terms of usage and size
according to types of
electronic appliances
Capacitors

Equipment used in storing

Singapore, Korea, Taiwan, Japan

electric charge
Pens

Printer inks

Singapore

Plastic Resins

Plastic granules

Singapore, Korea, Malaysia,
U.S.A., Germany

Printed Circuit Boards (PCB)

Electronic circuit boards

China, Taiwan

used in all kinds of
electronic appliances
Adapters and Cables

Electric cables and adapters

Thailand, China, Malaysia

Printer Heads

Printer heads used in

Singapore, Japan

printers and printing
calculators
Miscellaneous parts

Screws, Nuts, Washers, Rollers

China, Taiwan, Thailand

Packaging raw materials

Paper cartons, polyfoam,

Thailand

plastic bags, tapes, glue, tags

Note : No costs of any raw material exceed 50% of the total production costs.

Cal-Comp Electronics (Thailand) Public Company Limited

NUMBER OF SUPPLIERS
In comparison between the quantity of local and foreign raw materials, it appears that they do
not vary from year to year because it is the Company’s policy to equally maintain the amicable
relationships with its counterparts, customers and suppliers. The Company does not depend on
any supplier for more than 30% of the purchase value of raw materials during the past three
consecutive years.
Details of purchasing of local and foreign raw materials during 2001 - 2003
Year 2001
Thailand Plant
China Plant
Baht
%
Baht %
Million
Million

Year 2002
Thailand Plant China Plant
Baht
%
Baht %
Million
Million

Year 2003
Thailand Plant
China Plant
Baht
%
Baht
%
Million
Million

2,481.17

8.83

-

-

1,889.67

6.51

-

-

3,007.28

11.38

65.89

3.15

25,613.34

91.17

-

-

27,129.96

93.49

-

-

23,428.66

88.62

2,026.49

96.85

28,094.51 100.00

-

-

29,019.63 100.00

-

-

26,435.94 100.00

Local Raw
materials
Foreign raw
materials
Total

Notes :

2,092.38 100.00

The total purchasing amount of raw materials in 2003 included the amount of the ending materials.

SUPPLIERS
Raw materials purchased by the Company from suppliers are divided into three groups as
follows.
1) Direct purchase
2) Through parent company
3) Through subsidiary companies
The purchasing of essential raw materials such as ICs, chips is mainly subject to the
specification of the customers. Within this ambit, the parent company and subsidiary companies
are deemed as the Company’s customers. Random check in respect of each kind of raw materials
is proportionally and regularly made. Also the qualifications of each supplier, by following the vendor
quality assurance method prior to commencing any deal. The Company will purchase raw materials
from any supplier, which meets the Company’s requirements such as those obtaining an ISO 9002
certificate.
Moreover, the Company has asked the following suppliers to relocate their plants within the
area of the Company so as to facilitate the quality control, save storage room for raw materials and
reduce deliver time. The six suppliers have no connections with the Company nor its executive
officers.

The total purchasing amount of raw materials in 2003 included the amount of the ending materials.

PURCHASING POLICY
The Companyâ&#x20AC;&#x2122;s purchasing policy is based upon the comparison of prices of raw materials quoted
by each supplier, and punctual delivery of the supplier to each shipment and taking into account the
maximum benefits to be obtained by the company. In the purchasing process, the sales department and
the production department will cooperate in planning the purchase of raw materials so as to ascertain
the demands for each period and maintain the inventory at an appropriate level from time to time.

Cal-Comp Electronics (Thailand) Public Company Limited

RISK FACTORS
1. Risk factors in short term borrowing
The Company high proportion of short-term debt means the Company would be vulnerable in
the event of a credit crunch and exposes the Company to volatility associated with interest rates or market
liquidity. However, the Company intends to diversify the risk of borrowings and create some medium
term debt in order to strengthen the balance sheet.
2. Foreign exchange fluctuation risk
The fluctuation of the exchange rate of the Baht against dollar affects the Company’s sales and
profit significantly. The Company major exposure arises from import of raw materials and export revenues.
Occasionally, the Company has conservatively used the natural hedging policy to match expenses and
revenues, mainly denominated in US Dollar.
3. Risk of appreciation in Thai Baht
A sharp appreciation in Thai Baht will impact the margins and earnings of the Company.
Therefore, the Company must tighten control the operating cost and carefully manage the foreign liabilities
and assets in order to reduce the risk of appreciation in Thai Baht.
4. Risk factors in connection with the insufficiency of skilled labour force
Based on the fact that the growth of electronic industry is quite high and conspicuous in this
day and age, the Company deems it necessary to recruit a number of skilled and professional persons
such as engineers. By reason of a limited number of high-quality human resources in Thailand and
tendency of job changes, the Company had started to invest in Mainland China and it will be able to bring
more technical engineers to work and train Thai engineers with the lower cost compare to the Taiwan
and Korea engineers.
5. Risk factors in connection with the change in life cycle of products and production technology
Significantly, life cycle of electronic products always changes rapidly due to the continuity
innovation of technology and general standards of products. This situation forces product designers to be
alert and updated at all times. However, as the Company operates the OEM business mostly, it will not
be materially affected by such situation. Moreover, the Company’s production lines are ready to
accommodate new products. The Company always develops our technology and capability in order to
provide total solution to our existing and new customers.
6. Risk factors in connection with market competition
Due to the highly competitive electronics market, the ability to remain profitable is one of the
risks for manufacturers. However, the Company’s long-term efforts at cost reduction in Original Equipment
Manufacturing (OEM) and reputation for reliability and quality service are noticed by our world-class
clients. The strong client base shows that CCET can compete with industry leaders.
7. Risk factors in connection with the obsolete inventories
The Company’s inventories had increased from Baht 3,790.16 million at December 31, 2002 to
Baht 4,695.48 million at December 31, 2003. The management is always aware of the risk of obsolete
inventories; the Company strictly monitors shipping order schedule and control the lead time for raw
material procurement in order to reduce the risk of obsolete inventories.

2

1

2

2

Annual Report 2003

8. Risk factors in concentration on key clients
Owing to the continuously developing of new products and clients, the Company is able to enter
into LCD monitor business, Hard Diskette, and Printed Circuit Board Assembly with new clients, which
have grown to become the firm’s key sales growth driver. Meanwhile, given the popularity of handset and
wireless communications, telecommunication equipment products being a key driver as well. Furthermore,
the Company is continuously established its new product dedicated to consumer and electronic products.
Therefore, the concentration risk on key clients should be reduced.
9. Risk factors regarding the dependence on and competition with the parent company.
(Kinpo Group)
In the past, the company’s sales were largely via the parent company, Kinpo Group. Over the
past years, the Company has been able to increase its direct sales portion, thus reducing its dependency
on the parent company.
10.Risk factors related to the dependence on and competition with the parent company.
As the Company operates the OEM business whereby the production is subject to the customers’
instructions, the Company is not quite dependent on technology and know-how of the Kinpo Group. In
addition, the Company’s research and development department is responsible for improving the quality
of products made by the Company and production lines in order to maintain the lowest production costs.
Meanwhile, the Company invested in some R&D technology companies in Korea and Taiwan in order to
build up technology skill independently such as in term of telecommunication and computer peripheral.
11.Risk factors in connection with the influence of the parent company on the administrative
direction of the Company
At present, five members of the Company’s current board of directors have been designated by
Kinpo Group in order to facilitate the cooperation between the Company and Kinpo Group as the major
shareholder and acquire the benefits from efficient administration and good relationships between the
parties concerned. In other words, Kinpo Group may have the material influence on the administrative
direction of the Company. However, there is a clear-cut separation in the operational management and
costs incurred between Kinpo Group and the Company.
As mentioned earlier, Kinpo Group’s shareholding in the Company has been reduced from
67.36% to 57.13% after the conversion of Euro Convertible Debenture and the issuance of CCET shares to
Taiwan Depositary Receipt, making it unable to control voting at the shareholders’ meeting. Normally,
three-fourths of the votes are required to pass any significant issues, such as appointment of directors.
There are also some matters requiring a majority vote, except for those prescribed by laws or the Company’s
Articles of Association. Therefore, other shareholders may collect votes as a check and balance on
matters proposed by the major shareholder.
12.Risk factors in connection with the sufficient working capital
Adequate working capital is essential to ensure the smooth sales growth. The Company finances
its working capital mainly via internal fund and short-term loan. As of 31 December 2003, the Company
has the credit line of Baht 13,100 million and USD 327.50 million, which should be sufficient for the
Company’s current operation.
13.Risk factors in connection with the contingent liabilities
As of December 31, 2003, there were approximately Baht 96.20 million of outstanding bank
guarantees issued to Department of Customs, Electricity Generating Authority of Thailand, The
Communication Authority of Thailand, USD 8 million to 100% held- subsidiary company named Logistar
International Holding Co., Ltd. and USD 1.5 million standby letter of credit to the joint venture company
named Telian Corporation.

Cal-Comp Electronics (Thailand) Public Company Limited

SHAREHOLDING STRUCTURE AND MANAGEMENT
LIST OF TOP 10 SHAREHOLDERS
Group of shareholders

Nature of business

1. Kinpo Electronics, Inc

Manufacture and distribution
of electronic products

No. of shares
as December 31, 2003

%

150,066,000

49.20

and accessories

31,924,000

10.47

3. Far Eastern International Bank

-

30,000,000

9.84

4. Kingbolt International (Singapore)

-

24,193,000

7.93

5. Chase Nominees Limited 42

-

6,303,800

2.07

6. HSBC (Singapore) Pte., Ltd.

-

6,256,700

2.05

-

5,211,600

1.71

-

4,549,800

1.49

-

3,374,600

1.11

-

2,720,000

0.89

264,599,500

86.75

2. Compal Electronics, Inc

Manufacture and distribution
of computer equipment

7. American International
Assurance Company LimitedAIA5E
8. Thai NVDR Company Limited
9. Government of Singapore
Investment Corporate - C
10. American International
Assurance Company LimitedAIA1
Total

Notes : 1) Kinpo Group includes Kinpo Electronics, Inc. and Kingbolt International (Singapore) Pte. Ltd., which hold
totally 174,259,000 shares or 57.13%.
2) Compal Group is including Compal Electronics, Inc. and Just International (Singapore) Pte. Ltd., which
hold totally 34,639,000 shares or 11.36%
2.1) Just International (Singapore) Pte. Ltd., holds 2,715,000 shares or 0.89%

2

3

2

4

Annual Report 2003

MANAGEMENT STRUCTURE
Executive Committee
The Company has two executive committees, that is, the Board of Directors and the Audit
Committee, particulars of which are shown below.
Board of Directors
As of 31st December 2003, the Company’s Board of Directors consists of the following members.
1. Mr. Hsu, Sheng-Hsiung

Chairman

2. Mr. Chiang, Hsiao-Chin

President

3. Mr. Kuo, Hsien-Min

Director

4. Mr. Ko, Charng-Chyi

Director

5. Mr. Hsu, Sheng-Chieh

Director

6. Mr. Chou, Kung-Hsiung

Director

7. Mr. Alan Kam

Independent and Audit Director

8. Mr. William Hang Man Chao

Independent and Audit Director

9. Mr. Chatchaval Jiaravanon

Independent and Audit Director

Remark: 1. Board of Directors Total 9 persons
1 Chairman
1 President
4 Directors
3 Independent Directors
***(2 Directors are management)
2. The Chairman and President is not the same person for the determination of corporate
governance policy and Management. The Company has divided authorities between
Chairman of the Board of Directors and Executive Director for the suitability of the
administration and management functions.

SCOPE OF POWERS AND AUTHORITIES
1. Performance of duties of the board of director
The Board of Directors has applied its best knowledge, capability and experience to carefully
perform its duties in the Company’s interests in accordance with the law, the Company’s Objectives,
the Articles of Association and resolutions made at shareholders’ meeting with a strong commitment
to a practice of honesty, straight-forwardness and carefulness towards a maximum extent of effort
to maintain both the Company and shareholders’ benefits.
2. Duties on the Accountability to shareholders
The Board of Directors shall consistently have accountability to shareholders, protect the
interests of shareholders, and clearly and fully disclose information to the investors.

Cal-Comp Electronics (Thailand) Public Company Limited

3. Review and approval of financial report and changes in accounting policy
The Board of Directors is responsible for approving the financial report that have been
audited and/or reviewed by the auditor and the audit committee and any changes in accounting
policy.
4. Review and approval of policies, budget and business plan
The Board of Directors is responsible for reviewing and approving any appropriate policy,
budget and direction of the Company’s business operation and plan as proposed by the management.
5. Supervision of management
The Board of Directors is responsible for supervising the effective performance of the
Company’s policy by managing and informing the management in preparing any material reports on
the Company’s business operation and other related party transactions in accordance with the rules
and regulations of The Office of Securities and Exchange Commission and The Stock Exchange of
Thailand.
In case of necessity, the Board of Directors will request third parties to give professional or
technical advice on any matters, which may materially affect the Company’s business.
6. Internal control and audit
The Board of Directors has set up and maintains effective internal control system designed
to provide management with reasonable assurance that transactions are recorded properly, the
assets are safeguarded and that material frauds and malpractices are precluded. The Board of
Director also appointed the Audit Committee and the internal auditors to examine the adequacy and
the suitability of the internal control systems of the Company.
7. Independent performance of duties of non-management directors
The independent directors have in their own discretion to make decision on any strategy,
administration, appointment of directors and any other matter which may materially affect the benefits
of the Company, including the sufficient and appropriate access to information technology concerning
financial and business matters in the interest of the Company’s operation.
8. Ethics and etiquette
The Board of Directors prepared a compliance manual in relation to the ethics and etiquette
of the management and staff as guidelines for good and proper practice within the organization.

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SCOPE OF POWER AND DUTIES OF THE PRESIDENT
According to the Approval Authority List dated 1st November 1995, the President shall have
the powers and duties as follows:
1. To make a decision on important matters; determine the Companyâ&#x20AC;&#x2122;s mission, objectives,
strategies and policies; oversee the overall operations, productivity, customer relation and overseas
marketing; and assume responsibility to the Board of Directors.
2. To approve the Companyâ&#x20AC;&#x2122;s annual budgets.
3. To approve credit lines and terms of payment to the customers, conclusion of product
supply agreements and changes in dealing conditions, conclusion of insurance contracts, and
management of obsolete inventories.
4. To have the authority to approve a purchase of fixed assets and settlement of payment in an
amount up to Baht 20 million.
5. To have the authority to approve investment in a new project in an amount up to Baht 20
million.
6. To determine and approve principles for personnel management and annual salary increase.
7. To approve the appointment of advisors on areas crucial for the operations.
8. To perform any activity relevant to the general administration, excluding connected
transactions and acquisition & disposal of properties under the regulations of the Stock Exchange
of Thailand.
MANAGEMENT
As of 1st March 2004, the management of Company consists of the following 10 executive
officers.
1. Mr. Chiang, Hsiao-Chin

President

2. Mr. Lai, Chi-Tien

Vice President Administration

3. Mr. Liu, Kuo-Tung

Vice President Sale & Marketing

4. Mr. Yeh, Tien-Kung

Financial Controller

5. Mr. Yu, Hsing-Chin

Business Division Director

6. Mr. Yu, Shih-Tung

Business Division Director

7. Mr. Pan, Hung-Shen

Business Division Director

8. Mr. Chang, Zuei-Wei

Administration Director

9. Mr. Huang, Yu-Hui

Vice Managing Director

10. Mr. Chou, Kung-Hsiung

Vice Managing Director

Cal-Comp Electronics (Thailand) Public Company Limited

APPOINTMENT OF DIRECTORS
No nominating committee is established to select any appropriate persons to be directors of
the Company. The Company has laid down the guidelines on appointment of the Company’s directors
as follows.
1. The Board of Directors is responsible for selecting any appropriate persons, taking into
account the experience, vision, abilities and characters, and submitting a list of nominees to the
shareholders’ meeting.
2. At each annual general meeting of shareholders, it is prescribed by the Articles of
Association that at least one-thirds of the directors or if their number is not a multiple of three (3),
the number nearest to one-third (1/3) must retire. In the event that any retired director is re-elected,
a resolution of the shareholders’ meeting will be required. At the time of nominating any candidate
for the Board of Directors, the Company will prepare a list of details and information about such
candidate for the shareholders’ consideration.
According to the Articles of Association, the shareholders’ meeting will appoint the Board of Directors
in accordance with the following rules and procedures.
(1) Each shareholder has a vote for each share he/she holds.
(2) Each shareholder will exercise the right to elect one or more persons to be members
of the Board of Directors, however, that a vote will not be divided. Each shareholder has the right of
one vote for each share held, each shareholder must also exercise in full the total number of votes
he possesses.
(3) A person who has the most votes will be elected to the Board of Directors in respective
order up to the number of directors to be elected at that time. In case of two or more candidates
having an equality of votes, exceeding the number of directors required for election at that time, the
Chairman will have a casting vote.
BOARD OF DIRECTORS’ MEETING
The Board of Directors’ meeting would be held quarterly to consider and approve the business
performance, operations and financial statement of the Company, implement and direct the
Company’s policies, monitor and supervise its operations to maximize economic value and
shareholders’ wealth, approve any matters which are beyond the authorization limit of the Executive
Board. However, the Company might hold an extra meeting for approval the extra agenda, the
Company will send the notice of Board of Directors’ meeting including agenda and documents at
least 7 days prior to the meeting date.
For year 2003, the Board of Directors’ meeting was held 4 times and the extra ordinary
meeting was held 1 time totally 5 times. There were at least 1/3 of directors presented constituting
the quorum as required by articles of association of the Company.

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ORGANIZATION CHART

MR. HSU
SHENG-HSIUNG
Chairman

MR. CHIANG
HSIAO-CHIN
President

MR. LAI
CHI-TIEN
VP Administration

MR. LIU
KUO-TUNG
VP Sales &
Marketing

MR. YEH,
TIEN-KUNG

MR. YU,
HSING-CHIN

MR. YU,
SHIH-TUNG

MR. PAN,
HUNG-SHEN

MR. CHANG,
ZUEI-WEI

MR. HUANG,
YU-HUI

MR. CHOU
KUNG HSIUNG

Financial
Controller

Business
Division
Director

Business
Division
Director

Business
Division
Director

Administration
Director

Vice Managing
Director

Vice Managing
Director

Note : Effective from 1st March, 2004

Cal-Comp Electronics (Thailand) Public Company Limited

DIRECTORS REMUNERATION
Monetary remuneration
The following is a list of remuneration for 9 directors and 5 executive officers in 2003.
Type of remuneration

Salary
Bonus
Board allowance
Profit contribution
Others
Total

Remuneration
for 9 directors

Remuneration
for 5 Executive officers

17,200,000
1,830,000
19,030,000

2,147,816
407,422
645,225
3,200,463

Other remuneration (if any)
• Right to subscribe the shares or other security (please specify no. of security increase/
decrease of the executive officer)
- None• Provident Fund
- NonePOLICY ON CORPORATE GOVERNANCE
The Board of Directors realized the importance of Corporate Governance which will promote
transparency and managerial efficiency and therefore strengthen the confidence of all shareholders,
investors and other related parties.
The followings are the main policy to support Corporate Governance:
• Issued policy for the Rights and Equitable Treatment Shareholders and various groups of
stakeholders
• Managed through absolute responsibility and oversee for conflict of interests by the Board
of Directors
• Verified financial statement and connected transaction with related parties through
Controlling system and Internal Audit
• Operated business with transparency and disclosure
• Managed business operation under risk management
• Performed under Code of Ethics by Directors and employees
CORPORATE GOVERNANCE
The Board of Directors have implemented Best Practice Guidelines for Directors of Listed
Companies set forth by the Stock Exchange of Thailand such as roles, duties and responsibilities of
company directors, appointment of directors, fixing remuneration for directors, board meeting and
shareholders’ meeting, and reporting financial information. In addition, we have set up Audit
Committee as resources for the board of directors and management of the Company for necessary
assistance.

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SHAREHOLDERS: RIGHTS AND EQUITABLE TREATMENT
Shareholders’ Meetings
The Company encourages equal treatments and opportunities for all shareholders to express
their opinions and raise question at the meeting, according to the agenda and the issues presented
to the meetings. And the Company also has facilitated all shareholders to access to company
information, as well as attend shareholders’ meetings with easy procedures and with out expenses
charged.
The invitation letter and related documents were sent out to the shareholders within the period
as required by law. The meeting minutes were completely and accurately taken within the appropriate
times in order to enable the shareholders to monitor afterward.
The Company has a policy for the Rights and Equitable Treatment Shareholders and Various
groups of Stakeholders by controlling of the exploitation of inside information by executive officers in
securities trading since the Company’s securities are listed on The Stock Exchange. The Company’s
policy on such matter is described as follows.
1. An executive officer will prepare and submit to the Company a securities holding report
showing the number of securities held by him/her, his/her spouses and minor children in the
prescribed form immediately following the delivery of such report to The Office of Securities and
Exchange Commission and The Stock Exchange of Thailand as follows.
• Initial securities holding report (form 59-1) will be submitted within 30 days after the
closing date of public offering or after the date of appointment of such executive officer.
• Amendment to securities holding report (form 59-2) will be submitted within 3 days
from the date of each purchase, sale, transfer and acceptance of securities.
2. The Company has submitted to each and every executive officer a circular letter notifying
that any executive officer who is informed of any inside information will prohibit to do any trading
transaction of the Company’s securities 30 days prior to the Company’s publication of its operating
result (quarterly financial statement and annual financial statement) or any other significant
information which may materially affect the securities value.
The Company will inflict the maximum punishment on any executive officer who exploits the
inside information or performs any act in such a way that may disgrace or damage the Company.
LEADERSHIP AND VISION
The Board of Director has participated with the management by taking into account and making
an approval of vision, mission, strategies, and aim of the Company’s action plans as well as the
approval of the Company’s yearly budget. This includes supervising the management to perform
the business efficiently in accordance with the action plan’s target and budget, which shall help add
the highest economic value to the business and shareholders.

Cal-Comp Electronics (Thailand) Public Company Limited

VARIOUS GROUPS OF STAKEHOLDERS
The Board of Directors recognized the rights of all stakeholders, and supported a collaborative
approach between the company and its stakeholders for their mutual benefit.
The various groups of company’s stakeholders are treated with high priority as follows.
• Employees are treated equally and fairly. Benefits are paid appropriately.
• Products and service bought from supplier are in accordance with normal business condition
and agreements.
• Customers are treated with care. Their information is treated as confidential.
• Competition is moral. No illegal practices are used to destroy competitors.
• Community, environment, and society are responsibly treated.
BUSINESS ETHICS
The Company adopted Code of Best Practice for the Board of Directors of listed companies
issued by The Stock Exchange of Thailand as company’s Code of Ethics for directors to comply. The
Company will review the Code of Ethics in compliance with ethics of the management and staff as
guidelines for good and proper practice within the organization. The Company also has the regulations
of employees in order to set the standard of the work, quality and also the employees.
CONFLICT OF INTERESTS
The Audit Committee was appointed to consider every transactions and conflict of interest in
according to the relevant rules and regulations of The Stock Exchange of Thailand.

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RELATED PARTY TRANSACTIONS
Related party transactions executed by the Company and other companies within the Group
from the last three years are shown below.
Purchase value of raw materials through the Group and percentage of total purchase value
of materials.
Companies

Year 2001
Baht Million

%

Year 2002
Baht Million

23.29

0.08

61.88

3.41

0.01

3. Afreey Inc.

14.62

4. Telian Corporation
5. Wide Telecom Inc.

1. Kinpo Electronics, Inc.
2. Forward International Ltd.

Total
Notes :

Year 2003
Baht Million

%

0.21

18.48

0.07

-

-

-

-

0.05

-

-

-

-

30.69

0.11

70.29

0.24

69.50

0.26

5.44

0.02

200.48

0.69

71.71

0.27

77.45

0.27

332.65

1.14

159.69

0.60

%

Forward International Ltd. is a wholly owned subsidiary company of Kinpo Electronics, Inc.

In 2003, purchasing value of raw materials with Kinpo, Telian Corp. and Wide Telecom Inc.
decreased due to its higher cost compare to the other suppliers. In addition, almost raw materials
are supplied by the employing company. The purchase of raw materials from the associated
companies, Telian Corporation and Wide Telecom, Inc. is made in the ordinary course of business
and under the Joint-Venture agreement. No joint interested party has any beneficial stake in such
affiliate companies.
Sale value of products through the Group and percentage of total sales volume
Companies

Year 2001
Baht Million

%

Year 2002
Baht Million

%

Year 2003
Baht Million

%

1. Kinpo Electronics, Inc.

4,908.78

15.19

3,606.70

11.14

809.01

2.93

2. Logistar International

827.18

2.56

8,865.07

27.39

14,703.70

53.31

-

-

-

-

376.33

1.37

4. Telian Corporation

61.97

0.19

441.56

1.36

635.16

2.30

5. Wide Telecom Inc.

5.55

0.02

779.07

2.41

415.76

1.51

62.05

0.19

1.29

-

-

-

5,865.53

18.15

13,693.69

42.30

16,939.96

61.42

Holding Co., Ltd.
3. Cal-Comp Electronics
(Suzhou) Co., Ltd.

6. Afreey Inc.
Total
Notes :

The said figure includes proceeds from non-product items such as machinery.

Cal-Comp Electronics (Thailand) Public Company Limited

The sale of products through Kinpo Group has declined on a continual basis on account of the
Companyâ&#x20AC;&#x2122;s policy to reduce the dependence on such Group. However, the Company treats Kinpo
Group as one of its customers under the terms and conditions of the Supply/Manufacturing
Agreement.
In respect of the sale through associated companies, the Company considers such associated
companies as its customers under the terms and conditions of the Joint-Venture Agreement and
License Agreement.
GUARANTEE
At 31 December 2003, the Company has issued a letter of guarantee of USD 9.5 million
(2002 : USD 16.9 million) to a financial institution to secure credit facilities as granted by those
financial institution to a subsidiary company and a related company by issuing USD 8 million to
100% held subsidiary company named logistar International Holding Co., Ltd. and USD 1.5 million
stand by letter of credit to the joint venture company named Telian Corporation.
OPINIONS OF INDEPENDENT DIRECTORS IN CONNECTION WITH THE RELATED PARTY
TRANSACTIONS
After due consideration, the independent directors found no doubtful signs in the Companyâ&#x20AC;&#x2122;s
internal audit report showing the product trading transactions between the Company and Kinpo
Group during the year 2003. It appeared that any and all trading agreements and transactions have
been made in line with the relevant agreements entered into by both parties.
The independent directors expressed their opinion that the shareholding structures among
the Company, its subsidiary company, associated companies and related companies do not constitute
conflicts of interests among the Company, directors and executives and that no shareholding structure
or management of companies in the group are nominees.
The independent directors and the Company have committed themselves to ensure that any
potential related party transactions would be subject to the relevant agreements and disclose to
each other the type and value of any related party transaction in connection with the joint related
parties under the relevant notifications and regulations of The Office of Securities and Exchange
Commission.

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The following is the brief summary of the related agreements.
Supply/Manufacturing Agreement
Parties concerned : Cal-Comp Electronics (Thailand) Public Company Limited and
Kinpo Electronics, Inc.
(a company incorporated under the laws of Taiwan).
Execution date

: 1st December, 1999

Material subject

: Kinpo Electronics, Inc. agrees to purchase products and services
provided by the Company as indicated in any purchase order and
1. to give a prior notice to Kinpo when it plans to change the raw
materials used in manufacturing process or change the
manufacturing process; and
2. to ensure that all products must meet the Companyâ&#x20AC;&#x2122;s standards.

Expiry date

: The Agreement shall be valid for one year and continue to be
enforceable for another one year unless otherwise objected by
any party prior to its expiry date.

: The Company shall be entitled to the following benefits.
1. Know-how: the Company is authorized to apply know-how,
patents, technology and formulae in connection with the production
or sale of cordless telephones and other telecommunications
equipment owned, designed and developed by Telian Corporation
during the validity of the Joint Venture Agreement at the fair
market price.
2. Production: the Company is entitled to the first right refusal in
connection with any new product designed and developed by Telian.
Parties concerned will determine the remuneration and other
relevant contractual conditions from time to time.

Expiry date

: This Agreement shall be terminated upon occurrence of any of
the following events.
1. Both parties agree to terminate the Agreement.
2. Either party claims for compensation from any defaulting party,
but the latter fails to pay the compensation within the period
of 30 days.

: 25th September, 2000 Material subject :
1. The Company is granted exclusive right to use patents and
know-how for production and distribution of products (pagers)
owned by Wide Telecom throughout the validity of the Agreement.
2. Wide Telecom agrees to provide technical assistance
for production of pagers.
3. The Company is entitled to sell Wide Telecom-technology pagers
in any country, except Korea.
4. The Company agrees not to enter into contract with any current
and potential customer of Wide Telecom. Both parties also agree
to disclose their lists of customers to each other from time to time.

Expiry Date

: This Agreement shall be terminated upon occurrence of any of the
following events.
1. Either party breaches any provision thereof, and fails to remedy
within the period of 60 days.
2. Either party participates in the bankruptcy proceedings.
3. Either party becomes an injured party due to any Act of God for an
uninterrupted period of more than 6 months from the date of
notice given by the other party.

: The Company is granted 50 years usage-right of state-owned land
of Wujiang City for constructing plant. The constructed area and
designing for each building must be subjected to the layout of
the city, and constructed as per ratified designing program.

Expiry Date

: 3rd June 2052
The contract may be terminated, if Cal-Comp delays the payment
until 60 days.

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AUDIT COMMITTEE REPORT
The Board of Directors’ meeting of Cal-Comp Electronics Public Company Limited dated 23rd
August 2000 and 3rd October 2000 approved to appoint the Audit Committee, which consists of three
independent directors as members.
1. Mr. Alan Kam

Chairman of Audit Committee

2. Mr. Chatchaval Jiaravanon

Audit Committee

3. Mr. William Hang Man Chao

Audit Committee

The major responsibilities of the committee for 2003 was to ensure that financial record of
the Company are prepared in accordance with applicable local law and regulations. The committee
also ensure that necessary and vital transactions are fully recorded, disclosed, and presented in line
with generally accepted accounting principle and reviewed before submission to the Board of
Directors. The committee also attended regular Audit Committee meetings to review the annual
audit plan and review the Internal Audit Department reports. Internal Audit Department over the
financial year performed a total of 45 audits. The Audit Committee meetings were held 4 times in
the year 2003 to monitor and rewiew these items.
In May 2003, during the height of the SARS crisis in Asia, the Chirman of the Audit Committee
also visited all the factories of Cal-Comp in Petchburi and Samuthsakorn to ensure that the factories
implement adequate health policies to avoid production downtime. The committee was satisfied
with the stringent health policies implemented.
The Audit Committee also had discussions with company’s executive, internal auditors and
external auditor to consider on accounting and financial issues and clarify on internal control and
financial statements of 2003 operating result. The committees hereby acknowledged and accepted
the Company’s financial statements duly audited by the Company’s certified auditor, prior to
submission to The Securities and Exchange Commission and The Stock Exchange of Thailand.
For the year 2004, the committees proposed to the Board of Directors to appoint external
auditors of Ernst & Young Office Ltd. to be represented by Ms. Rungnapa Lertsuwankul, Certified
Public Accountant No.3516 and/or Mr. Narong Puntawong, Certified Public Accountant No.3315 and/
or Mr. Sophon Permsirevallop, Certified Public Accountant No.3182 and it is subject to the approval
of the Shareholders’ Annual General Meeting.
On behalf of the Audit Committee

(Mr. Alan Kam)
Chairman of the Audit Committee

Cal-Comp Electronics (Thailand) Public Company Limited

SCOPE OF POWERS AND AUTHORITIES OF THE AUDIT COMMITTEE
1. To ensure that the Company prepares any quarterly and annual financial report which
contains accurate and sufficient information and cooperate with any third party auditor
and executive officer in charge of preparing such reports.
2. To ensure that the Company has the appropriateness and effectiveness of the internal
control system and internal audit functions by coordinating with the external auditors and
internal auditors.
3. To consider and advise the appointment of the external auditors including the determine
an amount of remuneration for such auditor by considering the creditability, the adequacy
of its resources, the firmâ&#x20AC;&#x2122;s audit engagements, and the experience of its supervisory, and
the experience of its supervisory and professional staff.
4. To ensure that the conduct of business of the Company is in compliance with the securities
and exchange law, regulations of The Stock Exchange or any other applicable law.
5. To make decision on disclosing any accurate and complete information of the Company in
the case of any related party transaction or conflicting transaction.
6. To take care of any other matters assigned by the Board of Directors and approved by the
audit committee such as reviewing the accounting policy, the financial reporting system
and the information disclosure in conformance with accounting standards, all important
reports which must be disclosed to the public according to the law.
7. To prepare an audit report and publish it in the annual report of the Company.
8. To perform any other act as assigned by the Board of Directors with the approval of the
Audit Committee.

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CONTROLLING SYSTEM & INTERNAL AUDIT
The Company realized important of the internal audit, internal audit department was
established as compliance unit to review and verify financial statement and connected transaction
with related party. Moreover, Internal audits are independence unity and directly report to the audit
committee.

DIRECTORSâ&#x20AC;&#x2122; REPORTING
The Board of directors are responsible for the accuracy and completeness of the Company
and its subsidiaryâ&#x20AC;&#x2122;s financial statements. Accounting principles used and financial statements are
in compliance with accounting standards and disclosed.
In order to ensure the efficient internal control and audit system, the Audit Committee will
regularly review the financial statement and internal control system. The Audit Committee report
had already disclosed in annual report.
Audit committee had clarified on internal audit with good management that can be confident
for the financial statement and its subsidiary as of 31 December 2003.

Mr. Hsu Sheng-Hsiung

Mr. Chiang Hsiao-Chin

Chairman

President

Cal-Comp Electronics (Thailand) Public Company Limited

RELATION WITH INVESTORS
By overseeing the disclosure of essential company information to be handled correctly, on
time and with transparency, by having Investor Relations Department to take responsibility for investor
relations in acting as a representative to communicate with investors and allowing them to procure
appropriate devices for presenting information or for helping them in dealing with communication.
All interested investors can obtain information on the Company at website: www.calcomp.co.th or at
email address: IR@calcomp.co.th
Contact Department :

Investor Relations Department

E-Mail Address :

IR@calcomp.co.th

Telephone no. :

0-2261-5033-40 Ext: 5637-9

Fax no. :

0-2661-8039

SOCIAL AND ENVIRONMENT RESPONSIBILITIES
The Company always realizes that the successful factors in conducting business are not only
perseverance of good operation results but also the responsibility to society and environment.
Therefore, the Company determined to continue further contribution, though our activity is only a
small social contribution, but we did it with the great intention to all in society.
Regarding the environment, the Company received ISO 14001 certification from AFAQ & Bestcert
(Thailand) Co., Ltd., France in year 2003 which result from the successful in implementing the
ISO14001 standard for Environmental Management Systems (EMS) at both Mahachai and Petchburi
plants.

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FINANCIAL STATEMENTS

Cal-Comp Electronics (Thailand) Public Company Limited

REPORT OF INDEPENDENT AUDITOR
REPORT OF INDEPENDENT AUDITOR
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED
I have audited the accompanying consolidated balance sheets of Cal-Comp Electronics (Thailand) Public
Company Limited and its subsidiaries as at 31 December 2003 and 2002, and the related consolidated statements
of earnings, changes in shareholders’ equity and cash flows for the years then ended; and the separate financial
statements of Cal-Comp Electronics (Thailand) Public Company Limited for the same years. These financial
statements are the responsibility of the Company’s management as to their correctness and the completeness
of the presentation. My responsibility is to express an opinion on these financial statements based on my
audits. I did not audit the financial statements of Logistar International Holding Co., Ltd. and Cal-Comp
Electronics (Suzhou) Co., Ltd. and Cal-Comp Optical Electronics (Suzhou) Co., Ltd., three overseas subsidiary
companies, which are included in the consolidated financial statements for the years ended 31 December
2003 and 2002. These subsidiaries’ financial statements show total assets as at 31 December 2003 and 2002 of
Baht 5,372 million and Baht 3,006 million, respectively, revenues for the years then ended totalling Baht 16,831
million and Baht 9,321 million, respectively and net earnings for the years then ended of Baht 200 million and
Baht 70 million, respectively. In addition, the financial statements of the Company only include its investments
in its subsidiaries presented under the equity method, amounting to Baht 845 million and Baht 378 million, as
at 31 December 2003 and 2002, respectively, and its share of the profits of its subsidiaries for the years then
ended, amounting to Baht 200 million and Baht 70 million, respectively. The financial statements of the subsidiary
companies were audited by other auditors, whose reports I have received, and my opinion, insofar as it relates
to the amounts of the various transactions of those companies included in the consolidated financial statements
and the financial statements of Company only, is based on those auditors’ reports.
I conducted my audits in accordance with generally accepted auditing standards. Those standards require
that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. I believe that my audits, together with the report of other auditors discussed in the first paragraph,
provide a reasonable basis for my opinion.
As discussed in Note 11 to the financial statements, in 2002 the Company recorded its investment in an
overseas associated company under the equity method, based on information provided by that company’s
management which was unaudited by its external auditor. During 2003 the Company received the audited
financial statements of that associated company for the year 2002 and there was no material difference. The
Company has therefore recorded the difference in the 2003 financial statements.
In my opinion, based on my audits and the report of other auditors, except for the effect to the 2002
financial statements of such adjustments as might be required as a result of the matter described in preceding
paragraph, the financial statements referred to above present fairly, in all material respects, the financial
position of Cal-Comp Electronics (Thailand) Public Company Limited and its subsidiary companies and of CalComp Electronics (Thailand) Public Company Limited as at 31 December 2003 and 2002, and the results of
their operations and cash flows for the years then ended in accordance with generally accepted accounting
principles.
I draw attention to Note 7 to the financial statements that the Company presents significant product
sales and raw material purchase transactions in the financial statements at prices mutually agreed among the
Company, its subsidiaries and related companies.

Unappropriated
Total shareholders’ equity
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

378,000,000

378,000,000

378,000,000

378,000,000

2,988,569,232

2,411,616,650

2,988,569,232

2,411,616,650

6,906,943,338

6,301,276,788

6,906,943,338

6,301,276,788

15,897,224,682

13,752,183,942

14,174,923,054

13,197,153,506

The accompanying notes are an integral part of the financial statements.

4

3

4

4

Annual Report 2003

STATEMENTS OF EARNINGS
Cal-Comp Electronics (Thailand) Public Company Limited

For the Years Ended 31 December 2003 and 2002

(Unit : Baht)

CONSOLIDATED
NOTE

THE COMPANY ONLY

2003

2002

2003

2002

29,086,570,253

32,364,007,357

27,581,076,525

32,377,109,343

REVENUES
Sales
Share of profit from investments
accounted for under equity method
Gain on exchange

21

25,650,957

27,185,399

251,392,221

93,109,366

181,377,491

-

-

-

-

52,310,872

-

52,310,872

-

-

-

249,397,003

Reversal of allowance for diminution
in the value of investment
Other income
- Service income

7

- Others
Total revenues

37,251,091

59,042,140

28,262,937

26,863,649

29,330,849,792

32,502,545,768

27,860,731,683

32,798,790,233

26,953,139,154

30,055,401,976

25,549,755,226

30,055,401,976

792,289,294

715,553,747

660,321,932

660,926,645

3,791,682

-

25,638,366

-

-

25,079,789

52,704,503

385,629,465

Expenses
Cost of sales
Selling and administrative expenses
Share of loss from investments
accounted for under equity method
Loss on exchange

21

Directorsâ&#x20AC;&#x2122; remuneration

22

Total expenses

22,137,500

24,000,000

22,137,500

24,000,000

27,771,357,630

30,820,035,512

26,310,557,527

31,125,958,086

1,559,492,162

1,682,510,256

1,550,174,156

1,672,832,147

-74,719,846

-79,660,204

-65,401,840

-69,982,095

-

-5,946,935

-

-5,946,935

1,484,772,316

1,596,903,117

1,484,772,316

1,596,903,117

4.90

5.29

4.90

5.29

303.1

302.0

303.1

302.0

4.21

5.23

4.21

5.23

359.3

306.0

359.3

306.0

Earnings before interest expense
and income tax
Interest expense
Corporate income tax

23

Net earnings for the year
Basic earnings per share
Net earnings
Weighted average number of
ordinary shares (million shares)
Diluted earnings per share
Net earnings

24

Weighted average number of
ordinary shares (million shares)

The accompanying notes are an integral part of the financial statements.

636,000,000

3,020,000,000

the value of investment

714,881,697

3,050,310,720

-

78,881,697

-

78,256,624

625,073

-

-

-

30,310,720

-

30,310,720

-

The accompanying notes are an integral part of the financial statements.

Balance - end of year 2003

Dividends paid (Note 26)

Net earnings for the year 2003

Unrealised transactions in earnings statements

Currency translation adjustment

to shares

Increase due to convert convertible debentures

Periodic redemption of the debenture holders

-

636,000,000

3,020,000,000

Unrealised loss on change in

Balance - end of year 2002

-

-

Transferred to legal reserve

Dividends paid

-

-

-

Unrealised transactions in earnings statements

-

Currency translation adjustment

-

Net earnings for the year 2002

-

-

common stocks

paid share capital

-

Premium on

Issued and fully

Issuing convertible debentures during the year

of investment

Unrealised loss on change in the value

Balance - beginning of year 2002

For the Years Ended 31 December 2003 and 2002

Cal-Comp Electronics (Thailand) Public Company Limited

-149,010,536

-

-

-3,159,062

-

-

-

-3,159,062

-145,851,474

-

-

-

-47,262,986

-

-

-47,262,986

-98,588,488

2,219,233

-

-

-781,420

-

-156,347

-625,073

-

3,000,653

-

-

-

3,000,653

-

3,000,653

-

-

Other deficits equity component

Convertible
debentures -

-78,027,008

-

-

-76,537,967

-76,537,967

-

-

-

-1,489,041

-

-

-

-2,250,908

-2,250,908

-

-

761,867

differences

Currency
translation
Retained earnings

378,000,000

-

-

-

-

-

-

-

378,000,000

-

83,449,073

-

-

-

-

-

294,550,927

2,988,569,232

-907,819,734

1,484,772,316

-

-

-

-

-

2,411,616,650

-1,359,000,000

-83,449,073

1,596,903,117

-

-

-

-

2,257,162,606

Appropriated Unappropriated

CONSOLIDATED AND THE COMPANY ONLY

STATEMENTS OF CHANGES IN SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY

6,906,943,338

-907,819,734

1,484,772,316

28,713,968

-76,537,967

108,410,997

-

-3,159,062

6,301,276,788

-1,359,000,000

-

1,596,903,117

-46,513,241

-2,250,908

3,000,653

-47,262,986

6,109,886,912

Total

(Unit : Baht)

Cal-Comp Electronics (Thailand) Public Company Limited

4
5

4

6

Annual Report 2003

STATEMENTS OF CASH FLOWS
Cal-Comp Electronics (Thailand) Public Company Limited

For the Years Ended 31 December 2003 and 2002

(Unit : Baht)

CONSOLIDATED

THE COMPANY ONLY

2003

2002

2003

2002

1,484,772,316

1,596,903,117

1,484,772,316

1,596,903,117

-

-10,956,128

-

1,180,734

Depreciation and amortisation

482,898,837

555,415,480

466,871,966

555,415,480

Allowance for doubtful accounts (reversal)

-18,215,791

17,172,840

-18,215,791

17,172,840

214,342

1,392,497

214,342

1,392,497

-25,650,957

-27,185,399

-225,753,855

-102,858,366

Cash flows from operating activities
Net earnings for the year
Adjustments to reconcile net earnings to net cash
provided by (paid from) operating activities: (Gains) loss on sales of investments

Loss on disposal of equipment
Share of profit from investments accounted
for under equity method
Reversal of allowance for diminution
in value of investments
Reversal of provision for obsolete inventories

Supplemental cash flows information: Cash paid during the year for: Interest expense
Corporate income tax
Non-cash items consist of: Unrealised loss on change in
the value of investment
Sold fixed assets to related parties that
has yet been collected
Increase in capital due to convert
convertible debentures
Increase in premium on common stocks
due to convert convertible debentures

The accompanying notes are an integral part of the financial statements.

4

7

4

8

Annual Report 2003

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
Cal-Comp Electronics (Thailand) Public Company Limited and its Subsidiary Companies
For the Years Ended 31 December 2003 and 2002

1.

GENERAL INFORMATION
On 4 December 1989, Cal-Comp Electronics (Thailand) Public Company Limited was incorporated

as a limited company under Thai laws. On 11 August 2000, the Company registered the change of its
status to a public limited company under the Public Limited Companies Act. Its major shareholder is
Kinpo Electronics, Inc., a company incorporated in Taiwan. The Company operates its business in Thailand
and its principal activity is the manufacture of electronic products in three sectors, such as computer and
computer peripheral, telecommunication equipment and automation equipment. Its registered office is
191/54, 191/57 18th Floor, CTI Tower, Rachadapisek Road, Klongtoey, Bangkok 10110. The Company has
2 branches in Thailand located at Samutsakorn and Petchaburi province.
In 2000, the Company opened a branch in Taiwan to purchase raw materials and finished goods, to
coordinate between the Company and its overseas customers, and to facilitate the Company’s business
operations.
2.

BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements for the years ended 31

December 2003 and 2002 of Cal-Comp Electronics (Thailand) Public Company Limited (hereinafter called
“the Company”) and its subsidiary companies, Logistar International Holding Co., Ltd., Cal-Comp
Electronics (Suzhou) Co., Ltd. and Cal-Comp Optical Electronics (Suzhou) Co., Ltd., which were incorporated
and operated their businesses in overseas (hereinafter call “the subsidiaries”). The financial statements
of the subsidiaries were prepared by the management of the subsidiaries and audited by their auditors
overseas.
During the last quarter of 2003, the Company incorporated a subsidiary company, Cal-Comp Optical
Electronics (Suzhou) Co., Ltd., in The People’s Republic of China with an authorised capital of USD 10
million. The Company will hold 100% stake. This subsidiary has not yet commenced its business operation.
The Company has subsidiary companies as follows: -

Cal-Comp Electronics (Thailand) Public Company Limited

Revenue
Country of
Subsidiaries’ name

Logistar International

Investment proportion incorporation

business

for the years ended
Total assets

31 December

2003

2002

2003

2002

2003

2002

%

%

Million Baht

Million Baht

Million Baht

Million Baht

100

100

2,717

2,842

15,537

9,321

100

-

2,585

164

1,294

-

70

-

-

-

Holding Co., Ltd.
Cal-Comp Electronics

Nature of

(Suzhou) Co., Ltd.

British Virgin Company’s
Islands

distributor

The People’s

Manufacture

Republic of
China

Cal-Comp Optical Electronics

100

(Suzhou) Co., Ltd.

-

The People’s

Manufacture

Republic of

China

All intercompany balances and significant intercompany transactions have been eliminated from the
consolidated financial statements.
The financial statements of the branch office and subsidiaries incorporated overseas are translated
into Thai Baht at the closing exchange rate for assets and liabilities, and at the average exchange rate for
revenues and expenses. The resultant difference is shown under the caption of “Currency translation
differences” in shareholders’ equity.
3.

SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with accounting standards pronounced

by the Institute of Certified Accountants and Auditors of Thailand which are effective under the Accounting
Act B.E. 2543.
Significant accounting policies adopted by the Company and its subsidiary companies are summarised
below :3.1 Revenue and expense recognition
Sales and service income represent the invoiced value, excluding value added tax, of goods sold
and delivered after deducting discount and allowance and services rendered.
Expenses are recognised on an accrual basis.
3.2 Inventories
Inventories are valued at the lower of cost (first-in, first-out method) or net realisable value.
Provision for obsolete stocks is made for damaged, slow-moving and obsolete stock.
3.3 Trade accounts receivable and other receivables
Trade accounts receivable and other receivables are recognised and carried at original invoice
amount less an allowance (if any) for any uncollectible amounts. An estimate for doubtful debts is made
when collection of the full amount is no longer probable.

4

9

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Annual Report 2003

3.4 Investments
a) Investments in unit trusts in overseas, which are held as short-term investments, are
determined at fair value. Gains or losses arising from change in value is included in determining earnings.
b) Investments in marketable equity securities, which are held as available-for-sale securities,
are determined at fair value. Gains or losses arising from changes in value have been separately shown
in shareholders’ equity under the caption of “Other deficits”.
c) Investments in non-marketable equity securities, which the Company hold as, other
investments, are valued at cost. Loss on impairment (if any) of investments in available-for-sale securities
and other investments is included in determining earnings.
d) Investments in subsidiary and associated companies are valued under the equity method.
3.5 Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation
of buildings, building improvements and equipment are calculated by reference to their costs on a straightline basis over the estimated useful lives as follows :Buildings and building improvements

- 11 - 50 years

Machinery and factory equipment

-

5 - 10 years

Office furniture and equipment

-

5 - 11 years

Motor vehicles

-

5 - 10 years

Miscellaneous equipment and research and development equipment

-

1 - 7 years

No depreciation is provided for land, land improvement, construction in progress, equipment
under installation and fixed assets in transit.
3.6 Intangible assets
Deferred assets are stated at cost and amortised on a straight-line basis over 3 years.
Land occupancy rights are stated at cost and amortised on contract period of 50 years.
3.7 Deferred expenses
Deferred expenses are calculated by reference to their costs and amortised on a straight-line
basis at the following rates:
Convertible debentures issued expenses

-

3 years

Molds and spare parts

-

1, 2, 5 years

3.8 Impairment of assets
The Company reviews the impairment of assets whenever events indicate that the carrying value
of an asset exceeds its realisable value. Realisable value is the higher of an asset’s net selling price and
its value in use. The value in use is arrived at based on the management estimates.
The Company recognises an impairment loss in the earnings statements whenever the carrying
value of an assets exceeds its realisable value. The Company will reverse the impairment loss when there
are indications that the value of the asset is no longer impaired or the amount of impairment has decreased.

Cal-Comp Electronics (Thailand) Public Company Limited

3.9 Foreign currencies
Foreign currency transactions incurred during the year are translated into Baht at the rates
ruling on the transaction dates. Monetary assets and liabilities denominated in foreign currency
outstanding at the balance sheet date are translated into Baht at the rates ruling on the balance sheet
date.
Exchange gains and losses are included in determining earnings.
3.10 Foreign exchange contracts
Foreign exchange contracts are accounted for as hedge against exposure to the foreign currency
risk related to the Company and its subsidiaryâ&#x20AC;&#x2122;s purchases and sales to overseas in the normal course of
business. Premium paid for forward exchange contracts are recognised as liabilities or assets and are
amortised over the period of contracts and included in determining earnings.
3.11 Cash and cash equivalents
Cash and cash equivalents are cash and deposits at banks, excluded deposits at banks with an
original maturity over 3 months and cash secured as collateral.
3.12 Interest rate swap
The notional amounts of interest rate swap agreements of its subsidiary are not recognised in
the financial statements since the agreements do not require the settlement of such notional amounts.
The amounts receivable or payable under the agreements resulting from the difference in the interest
rates are recognised as interest income or interest expense at the balance sheet dates and at settlement
dates.
3.13 Foreign currency option
The notional amounts of the foreign currency option contracts of its subsidiary are not recognised
as either assets or liabilities on the contract dates. However, amounts received on options written are
recognised as liabilities, and amounts paid on options bought are recognised as assets. Such amounts
are amortised using the straight-line method over the terms of contracts and charged to current income.
Gains or losses on the exercise of the options are charged to current income.
3.14 Provident fund
The Company and its employees jointly established a provident fund as approved by the Ministry
of Finance in accordance with the Provident Fund Act B.E. 2530. The fund is contributed by both employees
at the rate of 2 percent of salary and the Company at the rate of 2 percent of salary.
3.15 Earnings per share
Basic earnings per share is calculated by dividing net earnings for the year by the weighted
average number of ordinary shares held by outside shareholders in issue during the year.
Diluted earnings per share is calculated by dividing net earnings for the year by the total sum of
the weighted average number of ordinary shares held by outside shareholders in issue during the year
plus the weighted average number of ordinary shares to issue for conversion of all dilutive potential
ordinary shares into ordinary shares.

5

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Annual Report 2003

3.16 Use of accounting estimates
Preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates for certain accounting transactions, affecting amounts reported
in the financial statements and notes related thereto. Subsequent actual results may differ from these
estimates.
4.

As at 31 December 2002, the above short-term investments are investment in open-ended mutual
fund overseas purchased by Taipei branch. The fair value of these investments is immaterially higher
than their cost and the Company has therefore recorded the short-term investments at cost.
5.

The Company’s management believes that allowance for doubtful accounts set aside is adequate in
the present situation.
6.

TRADE ACCOUNTS RECEIVABLE UNDER AGREEMENTS ASSIGNING RIGHTS OF CLAIM
As at 31 December 2002, the Company had assigned its rights of claim over trade receivables

amounting to Baht 677 million to banks, whereby the trade receivables had agreed in writing to make
their payment against all invoices issued by the Company directly to these banks. The Company, as the
assignor had surrendered control over these debts, and the banks, as the assignee, had sole rights of
claim over the trade receivables. The Company had recorded the transactions as sales to the banks. The
Company had received payment of Baht 474 million from the banks and recorded the amount as a deduction
from the trade accounts receivable balance. The remaining Baht 203 million, for which no payment had
yet been received from the banks, had been presented as “Trade accounts receivables under agreements
assigning rights of claim” in the balance sheet.
The Company had provided a guarantee to the banks to cover any defaults on payment by these
accounts receivable. However, no allowance had been set up against these assigned trade receivables
since the Company believed that they were financially strong.
7.

RELATED PARTY TRANSACTIONS
During the years, the Company had significant business transactions with its overseas related

companies (related by way of having certain shareholders and/or directors in common). They are in
connection with sales of goods, hire of manufacturing and purchases of raw materials. Such transactions,
which have been concluded on the terms and bases agreed between the Company and those companies,
are summarised below :-

A part of advances from and amounts due to related parties of Baht 325 million as of 31 December
2002 was charged interest at the rate of 2.495 percent per annum.
The movements of short-term loans to related party during the year are as follows :(Unit: Thousand Baht)
CONSOLIDATED
31 December 2002 Additional loans
Repayment 31 December 2003
Short-term loans to related party
Wise Sigma International Holding Co., Ltd.

266,648

-

129,005

137,643

Cal-Comp Electronics (Thailand) Public Company Limited

Short-term loans to Wise Sigma International Holding Co., Ltd. were denominated in US dollar
currency and interest was charged at the rate of 2 percent per annum.
Net foreign currency assets and liabilities has been included in Note 32.3.
8.

The Companyâ&#x20AC;&#x2122;s management believes that allowance for obsolete inventories set aside is adequate
in the present situation.
9.

ADVANCES PAYMENT FOR RAW MATERIALS
Included in the balances as at 31 December 2003 and 2002 mainly consist of: a)

Short-term loans of Baht 99 million (2002: Baht 124 million) provided to local suppliers for use
as working capital in agreed production of raw materials, on which interest is charged at the
rate of 7 percent per annum.

b)

Advance payment of Baht 47 million to overseas suppliers (2002: Baht 91 million) for the purchase
of molds and raw materials. The remaining balances is to be paid upon the completion of molds
(please refer to Note 31.4).

10. OTHER RECEIVABLES
The balances as at 31 December 2003 and 2002 of Baht 105 million and Baht 455 million, respectively
represent suspense accounts receivable set up for inventories to which engineering or component changes
have been made of which the expense can be passed on to customers or vendors and for raw materials
which were purchased from suppliers and the orders later cancelled. The Company sets up these suspense
account while awaiting the return of the raw materials to the creditors.

The Company respecitvely recognised a Baht 26 million share of profit for the year 2003 (2002: Baht
32 million), from its investment in Telian Corporation, an associated company. The figures were recorded
based on the audited financial statement by the other auditor (2002: based on the information provided by
that company’s management, which was not audited by the company’s external auditor as time constraints
meant that the company’s management was unable to arrange for the information to be audited in time.
The Company received the audited financial statement of this associated company for the year 2002 in
2003 and there was no material difference).
In addition to the above, as at 31 December 2003 the Company granted a USD 1.5 million corporate
guarantee to this associated company (2002: USD 1.5 million).
During the last quarter of current year, the Company has incorporated a subsidiary company, CalComp Optical Electronics (Suzhou) Co., Ltd., in The People’s Republic of China with an authorised capital
of USD 10 million. The Company invested USD 1.76 million in 2003. This subsidiary has no operation.
In December of the current year, the Company participated in the incorporation of inx Japan
International Inc. in Japan, and holds a 20% stake, amounting to Baht 3.6 million. Because its share
capital is not yet fully called up, by the end of 2003 this associated company had not yet registered as a
company and the investment is thus presented at cost.
12. OTHER LONG-TERM INVESTMENTS
(Unit: Thousand Baht)

A part of depreciation of 2003 amounting to Baht 333 Million (2002: Baht 334 million) for the
consolidated has been charged to cost of sales and the remaining part of Baht 12 Million (2002: Baht 9
million) has been charged to selling and administrative expenses.
(Unit: Baht)
THE COMPANY ONLY

Buildings
and buildings

Machinery
and factory

Office furniture

improvements improvements

equipment

and equipment

Land and land

Construction in
progress, equipment
under installation
and fixed
Motor vehicles assets in transit

Total

Cost
31 December 2002

108,210,251 1,376,083,234 2,523,013,452

175,398,950

20,379,911

Acquisitions

230,138,142

232,274,840

-

15,668,439

-

236,665,094

720,746,515

Disposals

-

-

(261,060,742)

(3,013,087)

(2,875,000)

-

(266,948,829)

Transfer in (out)

-

2,681,197

172,842,774

16,935,246

2,100,416

(229,646,396)

(35,086,763)

(7,706,691)

(7,979,166)

-

(1,376,322)

(129,623)

-

(17,191,802)

330,641,702 1,609,060,105 2,434,795,484

203,613,226

19,475,704

11,168,947 4,608,755,168

71,427,274

6,322,476

- 1,552,735,933

Translation adjustment
31 December 2003

4,150,249 4,207,236,047

Accumulated depreciation
31 December 2002

-

289,847,673 1,185,138,510

Depreciation for the year

-

62,815,053

249,196,942

19,268,539

2,198,425

-

333,478,959

Disposals

-

(76,344)

(55,292,530)

(1,467,898)

(2,145,403)

-

(58,982,175)

Translation adjustment

-

(50,135)

-

(486,671)

(38,385)

-

(575,191)

31 December 2003

-

352,536,247 1,379,042,922

88,741,244

6,337,113

- 1,826,657,526

31 December 2002

108,210,251 1,086,235,561 1,337,874,942

103,971,676

14,057,435

4,150,249 2,654,500,114

31 December 2003

330,641,702 1,256,523,858 1,055,752,562

114,871,982

13,138,591

11,168,947 2,782,097,642

Net book value

Depreciation charged in the earnings statements
2002

342,891,371

2003

333,478,959

A part of depreciation of 2003 amounting to Baht 323 million (2002: Baht 334 million) for the Company
only has been charged to cost of sales and the remaining part of Baht 10 million (2002: Baht 9 million)
has been charged to selling and administrative expenses.
As at 31 December 2003, certain machinery and factory equipment and office equipment items have
been fully depreciated but are still in use. The original cost, before deducting accumulated depreciation,
of those assets amounts to Baht 399 million (2002: Baht 108 million).

6

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Annual Report 2003

14. LAND OCCUPANCY RIGHTS
The balance as at 31 December 2003 and 2002 represents the land occupancy rights of its subsidiary
in the Peopleâ&#x20AC;&#x2122;s Republic of China. These rights are for 50 years.
(Unit: Thousand Baht)
Cost

68,555

Translation adjustment

(5,591)

Amortisation for the year (as included in statements of earnings)

(671)

Net

62,293

15. SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS
Short-term loans from financial institutions of the Company and its subsidiaries consist of loans
from both local banks and overseas financial institutions in both local currency and foreign currency. The
loans are mainly repayable within 3 months, and carry interest rates of 1.25 - 4.78 percent per annum.
The Company has considered the foreign currency risk pertaining to the above loans. These loans
which are not hedged with derivative financial instruments are included in Note 32.3.
16. OTHER PAYABLE
The outstanding balance as at 31 December 2003 and 2002 represents trade accounts payable
suspense for goods purchases which there are subject to changes in price, specifications and other
components. The Company has recorded the suspense account separately from normal trade accounts
payable.
17. OTHER CURRENT LIABILITIES
The balance as at 31 December 2003 and 2002 consist of :(Unit: Thousand Baht)
CONSOLIDATED
2003
2002

THE COMPANY ONLY
2003
2002

Advances received from customers
- for purchase of molds
- for preparation of production line

140,613

55,231

140,613

55,231

2,016

2,961

2,016

2,961

3,408

66,885

3,408

66,885

4,945

53,812

4,945

6,665

9

72,477

9

72,477

36,899

40,615

21,274

8,862

187,890

291,981

172,265

213,081

Money received from customers
pending for clear
Other payables
Other payable - forward contracts
Others
Total

Cal-Comp Electronics (Thailand) Public Company Limited

18. CONVERTIBLE DEBENTURES
On 25 March 2002, the Companyâ&#x20AC;&#x2122;s Annual General Meeting of shareholders approved the issue and
offering of not more than Baht 2,500 million of unsecured convertible debentures, or the equivalent amount
in any foreign currency, with a maturity of not more than 7 years. The offer price is to be determined later
and will depend upon the market situation at the time the debentures are issued and offered for sale to
institutional investors or specific groups of investors in accordance with the Notification of the Securities
and Exchange Commission.
On 6 December 2002, the Company issued 48,000 convertible debentures of USD 1,000 each,
amounting to USD 48 million, maturing in 3 years, redeemable on 6 December 2005, with the following
terms are conditions.
Description of convertible debenture
- Form

Unsecured convertible debentures

- Type

Debentures with registered holders

- Maturity period

3 years from the date of issuance convertible debentures

- Issue date

6 December 2002

- Maturity date

6 December 2005

- Offering value

USD 48 million

- Offering amount

48,000 units
Description of convertible debenture

- Face value

USD 1,000 per unit

- Offering price

USD 1,000 per unit

- Coupon rate

None

- Conversion rate

1 convertible debenture can convert to 1,211.9444 ordinary shares

- Right to convert into shares

Convertible from 6 March 2003 to 6 November 2005 at a conversion
price of Baht 36 per share (at a fixed rate of conversion of Baht
43.63 per USD 1).

- Periodic redemption at the

Annually. Redeemable at a price of 102.01% of principal on

option of the debenture holders 6 December 2003 and at 104.06% of principal on 6 December 2004.
- Redemption at the
option of the issuer

Redeemable within 2 years after the issue at a closing price of the
shares on The Stock Exchange of Thailand for each of 30 consecutive
trading days, which is at east 130 percent of the convertible price.

- Yield to maturity

2 percent per annum.

- Rights, benefits,

1. The redemption is to be made at maturity date.

and other conditions

2. The debenture holders have the right to authorise the Company
to redeem the debentures before the maturity date if there is a
change in authorisation.

- Alternative market

N/A

6

3

6

4

Annual Report 2003

During the current year, debenture holders exercised their rights to convert 2,501 debentures into
shares. The Company registered the increase in its paid-up capital to support such conversion, as
described in Note 19. In addition, during the last quarter of current year debenture holders redeemed
9,999 convertible debentures. There were 35,500 convertible debentures outstanding as at 31 December
2003.
19. SHARE CAPITAL/PREMIUM ON ORDINARY SHARES
On 25 March 2002, the Company’s Annual General Meeting of shareholders approved the reduction
of registered share capital from Baht 3,200 million to Baht 3,020 million, comprising shares with a par
value of Baht 10 and approved the increase registered share capital from Baht 3,020 million to Baht 3,780
million, comprising shares with a par value of Baht 10, for the purpose of the conversion of the convertible
debentures as described in Note 18.
On 26 April 2002, the Company registered the increase in its share capital with the Ministry of
Commerce. Registered share capital is Baht 3,780 million.
As described in Note 18, the Company registered increase of 3,031,072 shares in its paid-up capital
to support exercise of the convertible debentures. Both liability and equity components of such convertible
debentures have been transferred to share capital, and the difference between the transfer value and the
par value of the ordinary shares has been recorded as premium on ordinary shares.
20. LEGAL RESERVE
Pursuant to section 116 of the Public Limited Companies Act B.E. 2535, 5 percent of the net earnings
has been set aside as part of the statutory reserve in order to increase the amount of the reserve to the
level of 10 percent of the registered share capital. The statutory reserve could not use for dividend payment.
21. EXCHANGE GAINS (LOSS)
(Unit: Thousand Baht)
FOR THE YEARS ENDED 31 DECEMBER
CONSOLIDATED
THE COMPANY ONLY
2003
2002
2003
2002
Realised exchange gains (loss)
Unrealised exchange gains (loss)
Exchange gains (loss) - net

175,450

29,963

(107,226)

(330,586)

5,927

(55,043)

54,521

(55,043)

181,377

(25,080)

(52,705)

(385,629)

The unrealised exchange loss for the year 2002 included a Baht 10 million gains which is the result
of netting the Company’s unrealised exchange loss against the subsidiary’s unrealised exchange gains
from translation under forward contracts using the exchange rate at the balance sheet date. These forward
contracts were made for square hedge purpose between the Company and its subsidiary.

Cal-Comp Electronics (Thailand) Public Company Limited

22. DIRECTOR’S REMUNERATION
Directors’ remuneration represents the benefits paid to the Company’s directors in accordance with
section 90 of the Public Limited Companies Act, exclusive of salaries and related benefits payable to
Executive Directors.
23. CORPORATE INCOME TAX
Corporate income tax has been calculated at the rate of 25 percent on the non-BOI promoted earnings
after adding back provisions and certain expenses which are disallowable for tax computation purposes.
24. RECONCILIATION OF DILUTED EARNINGS PER SHARE
2003
Net earnings
Million Baht

Weighted average
number of ordinary shares
Million share

Earnings
per share
Baht

1,485

303.1

4.90

29

56.2

1,514

359.3

Basic earnings per share
Net earnings for the year of ordinary shareholders
Effect of dilute potential ordinary shares
Convertible debentures
Diluted earnings per share
Net earnings for the year of ordinary sharesholders
assuming the conversion of diluted potential
ordinary shares

4.21

2002
Net earnings
Million Baht

Weighted average
number of ordinary shares
Million share

Earnings
per share
Baht

1,596.9

302.0

5.29

3.5

4.1

1,600.4

306.1

Basic earnings per share
Net earnings for the year of ordinary shareholders
Effect of dilute potential ordinary shares
Convertible debentures
Diluted earnings per share
Net earnings for the year of ordinary sharesholders
assuming the conversion of diluted potential
ordinary shares

5.23

6

5

6

6

Annual Report 2003

25. NUMBER OF EMPLOYEES AND RELATED COSTS
CONSOLIDATED
2002

2003

2002

8,962

6,345

7,218

6,345

1,016,449

935,593

934,126

935,593

Number of employees at the end of year
Employee costs (Thousand Baht)

THE COMPANY ONLY

2003

26. DIVIDEND
On 19 March 2003, the Company’s Annual General Meeting of Shareholders approved the payment of
dividend of Baht 1.5 per share from its earnings for the year 2002 to the Company’s shareholders, totalling
Baht 453 million. The Company paid dividend on 16 April 2003.
On 13 August 2003, the Company’s Board of Directors Meeting approved the payment of interim
dividend of Baht 1.5 per share from its earnings for the six-month period ended 30 June 2003 to the
Company’s shareholders 303,213,156 shares, totalling Baht 454.82 million. The Company paid dividend
on 12 September 2003.
27. PROVIDENT FUND
The Company and its employees jointly established a provident fund as approved by the Ministry of
Finance in accordance with the Provident Fund Act B.E. 2530. The fund is contributed by both employees
at the rate of 2 percent of salary and the Company at the rate of 2 percent of salary and managed by
TISCO Securities Company Limited. The fund will be paid to the employees upon termination in accordance
with the rules of the fund. Total contributions of the Company for the current year amounted to Baht 2.0
million (2002: Baht 1.1 million).
28. BOARD OF INVESTMENT PRIVILEGES
The Company was granted the following tax privileges by the Board of Investment for certain specified
categories of products, under the Investment Promotion Act B.E. 2520 :- Exemption from corporate income tax on net profit for periods of 3 to 8 years commencing as
from the date of first earning operating income.
- Dividends paid from the promoted operations which are exempt from corporate income tax are in
turn exempted from inclusion in the determination of corporate income tax.
- Exemption from import duty on the raw and essential materials imported for use specifically in
producing for export.
- Exemption from import duty on items imported for re-export.
- Exemption from import duty on machinery as approved by the Board.
- An allowance of five percent of the increment in export income over that of the preceding year is
deductible from taxable income for a period of ten years commencing as from the date of earning
operating income.
- A fifty percent reduction of the normal rate of corporate income tax on net profit, of for a period of
5 years after the expiry of the corporate income tax exemption period.
To be entitled to these rights and privileges, the Company must comply with conditions specified in
the promotional certificates.
The Company’s operating revenues for the year ended 31 December 2003 and 2002 are below divided
according to whether the revenues are from promoted and non-promoted activities :-

Cal-Comp Electronics (Thailand) Public Company Limited

(Unit: Million Baht)
Promoted
2003
2002

Non-promoted
2003
2002

2003

Total
2002

Revenues
Sales
Local
Overseas
Total

1,536

507

3

5

1,539

512

23,761

29,870

2,281

1,995

26,042

31,865

25,297

30,377

2,284

2,000

27,581

32,377

29. FINANCIAL INFORMATION BY SEGMENT
The Companyâ&#x20AC;&#x2122;s operations involve the single industry segment of manufacturing and distributing
electronic equipment.
Information for the years ended 31 December 2003 and 2002 is below presented by geographic
segment :(Unit: Million Baht)
Local sales
2003 2002

For the years ended 31 December 2003 and 2002
Overseas sales
Total
Elimination
Grand total
2003 2002 2003 2002 2003 2002 2003 2002

Sales
- external

1,539

512

21,842

23,940

23,381

24,452

-

-

20,786

16,849

20,786

16,849 (15,080)

(8,937)

5,706

7,912

1,539

512

42,628

40,789

44,167

41,301 (15,080)

(8,937) 29,087

32,364

2,134

2,309

- related parties

-

- 23,381

Earnings from operations

24,452

Other income

242

138

Expenses and interest expenses

(891)

(844)

-

(6)

1,485

1,597

Corporate income tax
Net earnings

The Company used the gross profit margin + 2% basis to set transfer prices between the geographic
segment.
(Unit: Million Baht)
Local
2003 2002

As at 31 December 2003 and 2002
Overseas
Total
Elimination
2003 2002 2003 2002 2003 2002

receivable, net

5,500

5,094

2,324

1,911

7,824

7,005 (2,632) (2,440) 5,192

4,565

- Inventories, net

3,736

3,788

947

2

4,683

3,790

12

-

4,695

3,790

2,310

2,645

1,531

74

3,841

2,719

(12)

-

3,829

2,719

2,252

1,634

1,659

1,191

3,911

2,825 (1,730)

(147) 2,181

2,678

13,798 13,161

6,461

3,178 20,259 16,339 (4,362) (2,587) 15,897 13,752

Grand total
2003 2002

Assets
- Trade accounts

- Property, plant and
equipment, net
- Others
Total assets

6

7

6

8

Annual Report 2003

30. STATEMENTS OF CASH FLOWS
For the purpose of the statements of cash flows, cash and cash equivalents include cash on hand
and at financial institutions with an original maturity of 3 months or less and without restriction.
Cash and cash equivalents as reflected in the statements of cash flows consist of the followings :(Unit: Thousand Baht)
CONSOLIDATED
2003
2002
Cash

THE COMPANY ONLY
2003
2002

816

392,200

643

417

Deposits at financial institutions

527,776

440,519

37,962

66,496

Cash and cash equivalents

528,592

832,719

38,605

66,913

158,854

-

-

-

687,446

832,719

38,605

66,913

Current investments - Term
deposits with financial institutions
Cash and cash equivalents in
statements of cash flows

31. COMMITMENTS AND CONTINGENT LIABILITIES
31.1 Financial derivatives
a) Forward foreign exchange contracts
As at 31 December 2003, the Company and its subsidiary had outstanding forward foreign
exchange contracts for the sale of USD 25 million at ranging from Baht 39.58 to Baht 40.0475
per USD 1 (2002: outstanding forward foreign exchange contracts for the purchase of USD
100 million and the sale of USD 110 million). These foreign exchange contracts generally
have maturities of less than 1 year and the counterparties to the transactions are financial
institutions.
b) Interest Rate Swap Transaction Agreement
As at 31 December 2002, a subsidiary of the Company has entered into USD 15 million
Interest Rate Swap Transaction Agreement with an oversea bank. The contract is for a period
of 1 year, maturing in April 2003. At the maturity date, the subsidiary is required to pay
interest to the bank at 12 month LIBOR (as at 31 December 2002, the 12 month LIBOR was
1.48625 percent per annum) and the bank is required to pay interest to the subsidiary at a
fixed rate of 4.53 percent per annum.
c) Option agreements
As at 31 December 2003, a subsidiary of the Company has outstanding option contracts
under which it will pay USD 503 million (2002: USD 180 million) and receive Baht 18,695
million and RMB 372 million (2002: Baht 7,900 million) on maturity dates between 2 January
2004 to 22 September 2004 (2002: 17 January 2003 and 18 June 2003).
The fair value of the option contracts was USD 504 million (2002: USD 179.9 million). Such
fair value was based on forward exchange rate quoted by banks.
As at 31 December 2003, the exchange rate announced by the BOT is as following :-

Cal-Comp Electronics (Thailand) Public Company Limited

Currency

Average buying rate
(Baht per 1 USD)

Average selling rate
(Baht per 1 USD)

39.5385

39.7378

USD
31.2 Guarantees

a) As at 31 December 2003, there were outstanding bank guarantees of approximately Baht
96.2 million (2002: Baht 97.4 million) issued by banks on behalf of the Company in respect of
certain performance bonds as required in the normal course of the Companyâ&#x20AC;&#x2122;s business.
Its parent company has issued a letter of awareness to a bank for credit facilities.
b) As at 31 December 2003, the Company has issued a letter of guarantee of USD 9.5 million
(2002: USD 16.9 million) to a financial institution to secure against credit facilities as granted
by those financial institutions to a subsidiary company and a related company.
31.3 Sale of collection rights over trade accounts receivable
As discussed in Note 6, as at 31 December 2002 the Company had contingent liabilities to
banks amounting to Baht 474 million as a result of its sale of collection rights over trade accounts
receivable are unable to repay their debt to the banks.
31.4 Agreements for hire of production of molds
As at 31 December 2003, the Company had outstanding commitments of Baht 12.3 million
with overseas suppliers in respect of agreements for hire of production of molds (2002: Baht
32.1 million).
31.5 Sales and marketing services agreement
As at 31 December 2003, a subsidiary company had an outstanding commitment of SGD 1.2
million under a sales and marketing services agreement (2002: SGD 1.2 million).
31.6 Commitments
As at 31 December 2003, the Company had outstanding commitment of USD 8.2 million in
respect of uncalled portion of investments in its subsidiary.
As at 31 December 2003, its subsidiaries had outstanding commitments of approximately RMB
45 million in respect of agreements to construct a plant in the Peopleâ&#x20AC;&#x2122;s Republic of China
(2002: RMB 57.3 million).
32. FINANCIAL INSTRUMENTS
32.1 Financial risk management and policies
The Company and its subsidiaries are exposed to risks from changes in market interest rates
and in currency exchange rates and from nonperformance of contractual obligations by counter
parties. The Company and its subsidiaries use derivative instruments, as and when it, considers
appropriate, to manage such risks.

6

9

7

0

Annual Report 2003

32.2 Credit Risk
It is the Company and its subsidiaries’ policy to enter into financial instruments with creditworthy
counterparties. Therefore the Company and its subsidiaries do not expect any material loss to
arise from the counterparties’ failure to perform their obligations under the financial statements.
The Company’s and its subsidiaries’ revenues are generated in the technology industry, which
is characterised by short product life cycles and rapid advances in manufacturing technologies.
The maximum exposure to credit risk is the carrying amount of the financial assets less provision
for losses as stated in the balance sheets.
With respect to off-balance sheet derivative financial instruments, it is the Company’s and its
subsidiaries’ policy to enter into financial instruments with creditworthy counterparties.
Therefore, the Company and its subsidiaries do not expect any material losses to arise from the
counterparties’ failure to perform their obligations under the financial instruments.
32.3 Foreign currency risk
The Company and its subsidiaries’ exposure to foreign currency risk relates primarily to its
receivable, payable, loans and convertible debentures which are denominated in foreign
currencies.
As at 31 December 2003 and 2002, the Company’s net foreign currency assets and liabilities
that were not hedged by derivative financial instruments were as follows.
Million USD

Million NTD

Million EURO

Million SGD

2003

Million YEN
2002

2003

2002

2003

2002

2003

2002

2003

2002

-

5

133

116

71

16

2

6

0.7

0.4

(61)

(91)

(147)

(31)

(36)

(48)

(2)

(1)

-

-

(61)

(86)

(14)

85

35

(32)

-

5

0.7

0.4

Foreign currency assets
- Due within one year
Foreign currency liabilities
- Due within one year
Net foreign currency
assets (liabilities)

32.4 Interest rate risk and liquidity
The interest rate risk is the risk that future movements in market interest rates will affect the
results of operations of the Company and its subsidiaries and their cash flows. The Company’s
and its subsidiaries’ exposure to interest rate risk related primarily to their deposits at banks,
short-term investments, loans to related parties and loans from financial institutions. The
majority of these financial assets and liabilities carry interest rates which vary in line with
market rates. However, one subsidiary of the Company has entered into interest rate swap
agreements to hedge such interest rate risk, as discussed in Note 31.1 b).

Cal-Comp Electronics (Thailand) Public Company Limited

The cash flow requirements related to the Company and its subsidiary’s forward contracts and
interest rate swap are limited to the net differences between the contracted forward rate and
the spot rates prevailing at their settlement dates, and the net differences between the floating
rate and fixed rate at the maturity date, respectively.
Cash and cash equivalents as at 31 December 2003 and 2002 are as follows :(Unit: Million Baht)
CONSOLIDATED
2003
2002

Cash on hand
Cash at banks

0.8
686.6
687.4

0.4
832.3
832.7

THE COMPANY ONLY Interest rate
2003
2002

0.6
38.0
38.6

0.4
66.5
66.9

Market rate

32.5 Fair value
Fair value is defined as the amount at which the instrument could be exchanged in a current
transaction between knowledgeable willing parties in an arm’s length transaction. Fair values
are obtained from quoted market prices, discounted cash flow models or net asset value as
appropriate.
The following methods and assumptions are used to estimate the fair value of each class of
financial instruments.
Cash on hand and at banks, current investments, accounts and notes receivable - the carrying
values approximate their fair values due to the relatively short-term maturity of these financial
instruments.
Investment in shares - the fair values of publicly traded instruments are estimated based on
the last bidding price of the Stock Exchange of Thailand, all other instruments for which there
are no quoted market prices, a reasonable estimate of fair value has been calculated based on
the underlying net asset base for such investment, which approximates their carrying values.
Accounts payable - the carrying amounts of these financial liabilities approximates their fair
values due to the relatively short-term maturity of these financial instruments.
33. PRESENTATION
The presentation of these financial statements have been made in compliance with the Notification
of the Department of Business Development dated 14 September 2001, issued under the Accounting Act.
B.E. 2543.
34. APPROVAL OF FINANCIAL STATEMENTS
These financial statements have been approved by the Company’s directors.

7

1

7

2

Annual Report 2003

MANAGEMENT EXPLANATION
1. Sale revenues: At the end of year 2003 the Company’s sale revenues were Bt. 29,086.57 million,
which decreased 10.13 % from that in year 2002 due to the declining in demand of PC peripheral
and telecom products. During year 2003, the Company had gain on share of profit from
investment accounted for under equity method, gain on exchange and other revenues of Bt.25.65
million, Bt.181.38 million, and Bt.37.25 million respectively. Therefore, total revenues were
Bt.29,330.85 million.

2. Cost of good sold: Cost of good sold for the year 2003 amounted Bt.26,953.14 million or 92.67%
of the sale revenues which decreased from 92.87% compared to that in year 2002. As a result,
the gross margin slightly improved from 7.13% to 7.33% with contributed from higher bargaining
power over suppliers and efficient cost control.

3. Selling and administrative Expenses: The SG&A expenses in the year 2003 were Bt.792.29 or
2.72% of the sale revenues which increased from 2.21% in year 2002 due to the capacity expansion
and the increase in marketing activities for new products in China.

4. Interest Expenses: The Company had interest expenses at Bt.74.72 million which decreased
from Bt.79.66 million in year 2002 because of the decline of interest rate.

5. Net Profit: The Company’s net profit for the year 2003 was Bt.1,484.77 million which decreased
7.02% compared to the year 2002. At a result, the Company’s earning per share also decreased
from Bt.5.29 in year 2002 to Bt.4.90 in year 2003. However, net profit margin increased slightly
to 5.11% from 4.93%.